Senate Republicans Revise Clarity Act With New Ethics Rules as Trump Backs Changes

Senate Republicans released a revised version of the Digital Asset Market Clarity Act on Sunday night, adding more than 120 changes, including new ethics provisions aimed at addressing long-standing conflict-of-interest concerns. The bill, known as the Clarity Act, would establish a regulatory framework for bringing more crypto assets into mainstream finance if enacted.

The revised text arrived less than 48 hours before a pivotal Senate procedural vote on whether to advance the legislation. Republicans need 60 votes to move the bill forward, which means at least seven Democrats must support it. With the midterm elections approaching, lawmakers face a narrowing window to bring the bill to a final vote.

The new ethics provisions would permanently bar the president, vice president, members of Congress, federal judges, incoming elected officials and their spouses from creating or sponsoring digital assets in exchange for payment. Officials holding at least $15,000 in equity in companies that earn most of their revenue from issuing crypto assets would be required to sell those holdings or place them in a blind trust.

The draft eliminates a previously proposed expiration date for the conflict-of-interest restrictions, making them permanent. It would also allow state attorneys general to bring civil cases against officials who violate the rules. Sen. Cynthia Lummis, R-Wyo., a leading congressional advocate for crypto, said in a social media post that Democrats got what they wanted and now need to accept the compromise. Lummis also said President Donald Trump approved the new ethics provisions.

The ethics debate has centered on Trump's crypto business dealings and potential conflicts of interest. In 2025, Trump reported more than $1.4 billion in income from his family's various crypto ventures, with about 45% coming from a memecoin he launched days before taking office. The Trump family has also expanded its industry ties, launching World Liberty Financial, a decentralized finance platform, and founding American Bitcoin Corp., a publicly traded Bitcoin mining and treasury company co-founded by Eric Trump.

Prediction market odds rose sharply after the revised bill was released. On Polymarket, traders put the chance of the Clarity Act being signed into law this year at 30%, up from 14% earlier this month. On Kalshi, the probability that the bill would become law before Oct. 1 briefly climbed to about 64%, its highest level since August, before retreating to 53%.

The Clarity Act, short for the Digital Asset Market Clarity Act, passed the House last year but has struggled to win full congressional approval. The latest obstacles have centered on ethics restrictions for public officials, particularly those related to Trump's crypto business dealings. The revised bill represents an attempt to break that impasse before the procedural vote.

If enacted, the legislation would mark a significant step toward integrating digital assets into the traditional financial system. Supporters argue it would provide regulatory clarity for the crypto industry, while critics have raised concerns about consumer protection and the potential for conflicts of interest among officials with crypto holdings. The Senate vote will determine whether the bill advances or stalls again.

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Connor Quincy

Technology Reporter

Connor Quincy covers public affairs, politics, business, culture and daily news for Core Memo. The role focuses on verification, context, and clear explanations for readers.

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